Large Cap Growth Stocks – Page 9

Packaging Corp Acquires Boise Inc.

Packaging Corp of America (NYSE: PKG) has agreed to acquire its rival packaging and paper products company, Boise Inc. (NYSE: BZ) in deal estimated at $1.28 billion. According to the terms of the agreement, Packaging Corp will offer $12.55 a share, which represents a premium of 26% to Boise’s Friday closing stock price. Shares of both companies soared after the announcement. Packaging Corp, which is the fourth largest containerboard and corrugated packaging products maker in the U.S., said that the deal also assumes Boise’s debt, estimated at $714 million. Packaging Corp said that the acquisition will immediately boost its earnings and increasing its containerboard capacity by 42% to 3.7 million tons.

Umpqua To Buy Regional Bank Sterling Financial For $2 Billion

Umpqua Holdings Corp. (NASDAQ: UMPQ) has agreed to acquire regional bank Sterling Financial Corp. (NASDAQ: STSA) in a cash-and-stock deal valued at $2 billion. The announcement was made after the market close on Wednesday. Under the merger agreement, shareholders of Sterling Financial will receive 1.671 share and $2.18 in cash for each common share held. This translates to about $30.52. Sterling Financial closed at $16.96 on Wednesday. After the merger, combined assets will worth $22 billion. Besides, Umpqua will have $16 billion in deposits and $15 billion in loans.

Lululemon Slash Full-Year Guidance

Yoga pants maker, Lululemon Athletica Inc. (NASDAQ: LULU) said on Thursday that fiscal second quarter net income fell 1.3% due to higher input costs, masking robust revenue growth. Both earnings and revenue topped analysts’ estimation but shares tumbled as the high-end yoga apparel maker handed weaker-than-expected guidance for the current quarter and slashed full-year outlook. For the full fiscal year, the Company now anticipates earnings to be in the range of $1.94 to $1.97 a share on revenue of $1.63 billion to $1.64 billion down from its earlier guidance of $1.96 to $2.01 a share on sales $1.65 billion to $1.67 billion.

Kroger Company Posts 4.4% Growth in Q2 Same-Store-Sales

The Kroger Company Inc. (NYSE: KR) reported on Thursday that fiscal second quarter net income rose 14%, driven by 4.4% growth in same-store-sales (3.3% excluding fuel sales). Shares edged higher as the company lifted its growth outlook for same-store-sales. For the recently concluded quarter, Kroger posted a profit of $317 million or 60 cents a share compared to net income of $279 million or 51 cents a share. Sales climbed 4.6% to $22.72 billion. Analysts polled by Thomson Reuters had forecasted earnings of 60 cents a share on sales of $22.71 billion. Operating margin improved slightly to 2.6% from 2.5%.

Apple Inc. Stock Falls About 5% After New IPhone Launch

Apple Inc.’s (AAPL) latest iPhone 5 C, which was unveiled on Tuesday, has failed to excite analysts. Analysts argue that iPhone 5C is priced too high for gaining traction in emerging markets, sending shares down about 5% in regular trading hours on Wednesday. Still, many analysts are positive that the stabilization of margins and company’s aggressive product launch plan will bolster earnings. On Wednesday, 3 major financial firms, Bank of America Corp., UBS AG and Credit Suisse Group AG, all downgraded the stock.

Walgreen Co. To Acquire Privately Owned Firm, Kerr Drug

Drugstore chain, Walgreen Company (NYSE: WAG) announced on Tuesday that it has agreed to acquire a privately held pharmacy chain, Kerr Drug. The terms of the deal were not announced. North Carolina based Kerr Drug, which operates retail drugstores and specialty pharmacy business, reported sales of nearly $381 million, in the last fiscal year. Walgreen, which is the nation’s leading drugstore chain, had sales of $72 billion, in the latest fiscal year. Deerfield-based Walgreen said that the acquisition will help it to gain traction with new wellness centers in North Carolina.

McDonald’s August’s Sales Up 1.9%

The world’s largest burger chain, McDonald’s Corp. (NYSE: MCD) said on Tuesday that global sales rose 1.9% in August, driven mainly by revival in its European business, which offset weakness in other markets, including the U.S. The result was better-than-expected. Analysts were anticipating an increase of 0.3%. In Europe, same-store-sales increased 3.3% while analysts had forecasted a drop of 0.1%. Same-store-sales in the U.S. edged up 0.2%, which was below analysts’ forecast of 0.8% gain. Same-store-sales in Asia Pacific, The Middle East and Africa, slipped 0.5% while analysts’ had expected a 1% drop.

Suntory Beverage & Foods Ltd. Buys GlaxoSmithKline’s Lacozade and Ribena Brands

Japan’s Suntory Beverage & Foods Ltd. has agreed to acquire, Lacozade and Ribena, two soft drink brands from GlaxoSmithKline Plc. (ADR) (NYSE: GSK) in a deal estimated at 1.35 billion pounds or $2.1 billion. The acquisition will allow Suntory, known for its beer and Yamazaki whisky, to beef up its product portfolio and gain traction in international markets, where these brands are present already. GlaxoSmithKline said that it use this money towards repaying debt and some other general corporate purposes.

Smith & Wesson Posts Strong Quarterly Results But Shares Tumble

Firearms maker, Smith & Wesson Holding Corp. (NASDAQ: SWHC) after the market close on Thursday said that fiscal first quarter net income rose 49%, driven by robust demand for guns. Besides, earnings and revenue also beat Street’s consensus estimate. However, analysts are concerned about the future sales trend. Analysts fear that the unusual demand seen in last few quarters will stabilize now. A series of mass-shooting incidents last year raised speculation that lawmakers might make gun control laws stiffer. Still, the Company is confident that sales will continue to show strong growth. Smith & Wesson lifted its full-year sales outlook on Thursday.